Tesla's stock has surged more than 20,000% since it went public in 2010. The searing rally has been driven by production growth, EV frenzy, and frontman Elon Musk. But many Wall Street analysts say Tesla's bloated stock price is a bubble that's bound to pop.
Should you buy TSLA stock?
So, why is Tesla stock so high? Automakers are among the industries struggling with supply chain issues from the novel coronavirus pandemic. Global manufacturers from Shenzhen to Detroit slowed, halted, or shifted manufacturing operations toward PPP and medical equipment during the 2020 economic crisis.
Would it be worth buying 1 share of Tesla stock?
Mar 22, 2022 · For a sixth straight day, shares of electric vehicle (EV) star Tesla ( TSLA 1.10%) drove higher on Tuesday, up 2.5% as of 12:45 p.m. ET. CEO Elon Musk might be personally responsible for that with ...
Why is TSLA so overvalued?
Jan 25, 2021 · Tesla’s share price doesn’t matter so much when you put the above in perspective. Tesla’s ability to drive environment consciousness by lowering CO2 emissions from manufacturing EVs and challenging 20th-century car manufacturers to do the same is of more value than any vehicle manufacturing stock on the market. Thank you for reading, Rick Govic
Why everyone should sell Tesla stock now?
Nov 16, 2021 · Tesla (TSLA) stock forecast. The chart has now regressed to the $1,000 support line, and early indications in the premarket are that Tesla shares may breach this too. The next support then becomes ...
1. Autonomous, Connected, Electric, Shared (ACES) ecosystem
In 2019 only two million electric vehicles were sold globally. Electric vehicles represent a minor 2.5% of the global light-vehicle (LV) market, so there are significant growth opportunities for EVs.
2. Competition from EV manufacturers
Tesla has a strong advantage over competing EV manufacturers because they have already built their own products and services across the ACES ecosystem. Tesla has also developed customer interfaces which integrate with all of its Tesla models.
3. Downstream revenues through mobility as a retail service
Tesla has the opportunity to become the dominant ‘aggregator’ for customer revenue streams. According to KPMG, downstream revenue streams could increase ten-fold over a ten-year lifetime period of a vehicle.
What does the future hold?
Autonomous, Connected, Electric, Shared vehicles have a long way to go; however, there has already been substantial technical progress paving the way for EV manufacturers in light-vehicles and electric trucks (eTrucks). Electric vehicles and trucks are already entering markets worldwide.
TSXV:WML
In the first quarter of 2020, Tesla produced 103,000 vehicles, only 4% of the vehicles produced by Toyota in the same period.
But Wait! There's More..
As Elon Musk loves to push the envelope whether its creating electric cars or sending rockets into space or selling flamethrowers. It was not entirely surprising that Mr. Musk took to Twitter on Monday to reveal his newest creative venture. Musk is launching short shorts, Yes, short shorts!
Who is the CEO of Tesla?
CEO Elon Musk clearly agrees. On Tesla's Q3 2020 earnings call, Musk expressed his belief that "there's in excess of a dozen start-ups effectively in Tesla," including developers of microchips, battery cells, superchargers, and autonomous driving technology.
When will electric cars be available?
However, competition in the space is about to get fierce, with new electric vehicle start-ups and established auto companies bringing a flood of battery-electric vehicles to market between 2021 and 2023.
Does Tesla have an advantage over its competitors?
This isn't an easy question to answer. Certainly, Tesla has an advantage over many of its competitors in the electric vehicle space in that it's been manufacturing electric cars for a long time and thus has experience with the relevant technology, design challenges, supply chains, etc.
Is Tesla over valued?
Tesla's clearly no bargain, and seems to be richly valued. Whether you think it's over valued depends on what kind of growth you expect to see in Tesla's vehicle sales, its technological advances, and sales and development of the company's non-vehicle products.
Is Tesla better than Nvidia?
However, by other valuation metrics, Tesla fares much worse against NVIDIA : TSLA PE Ratio data by YCharts. A higher P/E ratio makes sense for Tesla because it has vastly more depreciable assets than NVIDIA, but even going by the EV-to-EBITDA ratio, which strips out depreciation, NVIDIA sports a superior valuation.
Is Elon Musk the face of Tesla?
Two words: Elon Musk. The Tesla founder isn’t just the face of the company. He is the company. He’s outspoken, brash, and a supposed visionary. He attracts investors. As a February Global Bubble Status Report from the Financial Crisis Observatory made clear, Musk has packaged the carmaker in a “fancy storyline.”.
Is Tesla the most valuable car company?
It’s no accident that Tesla has become the world’s most valuable car company during a global pandemic. The present for carmakers looks grim, so investors can only daydream about the future. Once that future finally arrives, speculators will see their Tesla stock investment for what it was all along. A mistake.
Is Tesla a dotcom?
Tesla is a self-contained dotcom bubble. It has artfully generated FOMO on a large scale. Based on an association with high technology and a nicely curated image of the “future,” it has created its own stock mania. There’s little doubt that this mania will end sooner or later.
Is Tesla the most valuable company in the world?
It's no accident that Tesla has become the world's most valuable company during a global pandemic. | Source: REUTERS/Rashid Umar Abbasi. Tesla’s stock continues to rise to ridiculous heights. Its fundamentals don’t come close to justifying its price. Tesla’s market cap is over 6,000 times greater than its 2019 earnings.
How much did Tesla lose in 2020?
Short sellers lost $38 billion over the course of Tesla's monumental 2020 rally. That epic surge has made Tesla the most valuable car company in the world, catapulting it above and beyond Goliaths like Toyota and Ford.
How many cars did Tesla sell in 2020?
Tesla also doesn't sell even close to the amount of vehicles as the competitors its valuation now dwarfs. Tesla sold just shy of 500,000 cars globally last year. In the US alone in 2020, GM's total sales were more than five times that amount, while Ford sold nearly 800,000 F-Series pickups.
Who is Elon Musk?
There's a final factor that can't be overlooked: outspoken chief executive Elon Musk. The eccentric, meme-loving mogul has inspired legions of loyal Tesla evangelists and investors, largely through his irreverent Twitter feed and other ambitious ventures like SpaceX, PayPal, and Neuralink.
Where is Tesla made in 2021?
Investors and analysts have reason to believe that Tesla's production capacity will grow substantially in 2021 as new manufacturing plants in Berlin, Germany and Austin, Texas get up and running. And many think demand for Tesla's cars will keep growing, especially in China — where the EV maker has already done exceptionally well.
Is Tesla a bubble?
Despite all of those potential upsides, many experts argue that the frenzy surrounding Tesla is nothing more than a bubble that will burst sooner or later. By conventional measures, they point out, Tesla's valuation is completely out of whack with the rest of the auto industry.
